UK households paid £13,961 extra in bills — The Guardian

In the United Kingdom, households have spent an average of an additional £13,961 since 2021 on mortgage and loan payments, as well as electricity, gas and water bills. The Guardian cites these calculations by the Trades Union Congress (TUC), based on official data.

According to the TUC, the additional costs averaged £2,792 per year. The trade union federation links the rising cost of living to persistent inflation and higher interest rates. It said that financial pressure on households is restraining consumer spending and affecting the country’s economy.

Mortgage payments rose the most

Households with mortgages paid an average of £9,034 more since 2021, according to TUC calculations, or £1,806 per year. Borrowers with other loans spent an additional £1,911, equivalent to £382 annually.

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Electricity and gas costs rose by an average of £2,644 over the period, or £529 per year. Water bills increased by £372, or £74 per year. The TUC also noted that average rental costs rose faster than mortgage expenses, which may indicate that these costs are being passed on to tenants.

Calls for support ahead of the budget

The TUC called on Chancellor of the Exchequer John Healy to include household support measures in the budget on 28 October, including introducing a social energy tariff, helping low-income households and young people, and raising taxes on capital gains and banks.

In a speech, Healy promised to use the budget to give households “breathing space,” but warned that the government’s ability to soften the global economic shock is limited. Against the backdrop of forecasts that annual energy bills for a typical household could reach £2,000 from January, the government is also under pressure from business representatives and think tanks proposing their own support measures.